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Emaar Surges to 4-Year High on Property Outlook: Dubai Mover

March 10 (Bloomberg) -- Emaar Properties PJSC rose to the
highest level in more than four years on investor bets a
property recovery in the emirate will boost sales at the
developer of the world’s tallest skyscraper.

The shares rallied 3 percent to 5.56 dirhams, the highest
close since October 2008, in Dubai. The stock was the biggest
gainer and second-most traded on the benchmark DFM General
Index, which rose 1.5 percent, according to data compiled by
Bloomberg.

“The earnings outlook for the company is strong given the
emirate’s property recovery,” said Waleed Al Khateeb, Dubai-based senior finance manager at Daman Securities LLC.

Emaar’s 48 percent surge this year makes it the best-performing stock on Dubai’s stock index, which has advanced 18
percent. The company is poised to report a nine percent increase
in 2013 earnings after an advance of 18 percent last year,
according to the mean estimate of 11 analysts compiled by
Bloomberg.

Gross domestic product in the second-biggest sheikhdom of
the United Arab Emirates may grow more than 4 percent this year,
Sami Al Qamzi, director general of Dubai Department of Economic
Development, said in an e-mailed answer to questions. Figures
for the first six months of 2012 point to growth of 4.1 percent
for the full year, he said.

“Hotel occupancy has already hit record high levels and
the number of travelers and tourists has been higher than
expected during the first two months of the year,” Al Qamzi
said. The department also expects “the construction and real
estate sector, which is already showing positive signs, to
bounce back.”

Emaar’s 14-day relative strength index rose to 73 today. A
reading above 70 indicates to some analysts that a security is
poised to drop.

Eleven analysts recommend investors buy Emaar shares, while
two say hold them and one says sell, according to data compiled
by Bloomberg. HSBC Holdings Plc said last month it expects
Emaar’s shares to rise to 6 dirhams.